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The following are selected ledger accounts of Blue Corporation at December 31, 2025. Cash $244,200 Salaries and wages expense (sales) $374,880 Inventory 706,200 Salaries
The following are selected ledger accounts of Blue Corporation at December 31, 2025. Cash $244,200 Salaries and wages expense (sales) $374,880 Inventory 706,200 Salaries and wages expense (office) 456,720 Sales revenue 5,643,000 Purchase returns 19,800 Unearned sales revenue 154,440 Sales returns and allowances 104,280 Purchases 3,677,520 Freight-in 95,040 Sales discounts 44,880 Accounts receivable 188,100 Purchase discounts 35,640 Sales commissions 109,560 Selling expenses 91,080 Telephone and Internet expense (sales) 22,440 Accounting and legal services 43,560 Utilities expense (office) 42,240 Insurance expense (office) 31,680 Miscellaneous office expenses 10,560 Advertising expense 71,280 Rent revenue 316,800 Delivery expense 122,760 Casualty loss (before tax) 92,400 Depreciation expense (office equipment) 63,360 Interest expense 232,280 Depreciation expense (sales equipment) 47,520 Common stock ($10 par) 600,000 Blue's effective tax rate on all items is 20%. A physical inventory indicates that the ending inventory is $686,000.
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